Consumer Costs Rise Sharply in Trump’s First Month
Consumer prices jumped 0.5% in January, the largest increase since August 2023, challenging President Donald Trump’s campaign promise to “immediately bring prices down.” The annual inflation rate hit 3%, surpassing economists’ predictions of 2.9%.
Egg prices, as Protos points out, are rising faster than Bitcoin. Prices have surged 53% from $4.85 to $7.43 per dozen since January 3. Under Trump’s second term, which began in January, egg costs have already risen 13% from $6.55, driven partly by avian flu outbreaks affecting supply.
The Labor Department reports broad price increases across sectors. Shelter costs, accounting for nearly 30% of the CPI rise, increased 0.4%. Food prices climbed 0.4%, with grocery store prices up 0.5%. Prescription medication costs saw a record surge, while motor vehicle insurance rose 2%.
Federal Reserve Chair Jerome Powell told lawmakers the inflation report shows the central bank remains “not quite there yet” in reaching its 2% target. The data has diminished expectations for interest rate cuts, with the Fed maintaining rates at 4.25-4.50%.
Economists warn Trump’s proposed tariffs on imported goods could further fuel inflation, while planned deportations might create labor shortages and drive up business costs.
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